Avalanche price could devastate investors as previous LUNA negotiations re-kindle uncertainty
- AVAX price displays subtle bearish cues on the Volume Profile indicator.
- Avalanche price has reported a $60 million loss associated with the LUNA sell-off.
- Invalidation of the bearish thesis is a breach at $32.
Avalanche price could be setting up for another move to the downside. Traders should be cautious with bullish targets amidst potential “news-related sell-offs.”
Avalanche price is questionable
Avalanche price displays a possibility to consider another downside move. The AVAX price currently trades at $26, still within range of the initial sell-off that occurred on May 9. The bulls have displayed some retaliative effort over the weekend, but subtle cues point at one more fall. The potential sell-off comes at interesting times in the market. The AVAX founder reported a $60 million loss entangled in the massive capitulation event last month for the LUNA community.
Avalanche price also displays bearish signals using the Volume Profile and Relative Strength Index. The newly established bowl-like pattern could project a sell-off back into the $21 levels. The Relative Strength Index has a significant bearish divergence recently printed on the 4-hour chart. The current uptrend move could be fully retraced in the coming days when combined.
AVAX/USDT 4-Hour Chart
Invalidation of the bearish idea is a breach above $32. If the bulls breach this level, then consider this thesis incorrect. The bulls could then aim for $56, resulting in a 100% increase from the current AVAX price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
